Company Number: 13906799

Analysis Date: 2025-07-20 16:36 UTC

Financial Health Assessment: EVAM CLINIC LIMITED
Assessment Date: 28 February 2024

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1. Financial Health Score: C

Explanation:
The company's financial position shows some improvement in net assets but also signals caution due to fluctuations in current liabilities and working capital. The transition from a near-zero net asset base in 2023 to a positive net asset position in 2024 is encouraging, yet the high level of current liabilities relative to current assets in the latest year warrants careful monitoring. The financial health is fair but not yet robust.

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2. Key Vital Signs

Metric	2024 Amount (£)	Interpretation
Fixed Assets	2,153	Minimal investment in long-term assets, typical for a micro entity.
Current Assets	15,694	Available short-term resources including cash and receivables.
Current Liabilities	10,703	Debts due within one year; significant increase from 600 in 2023.
Net Current Assets	4,991	Positive working capital indicating ability to cover short-term debts, but reduced from 20,803 in 2023.
Total Assets Less Current Liabilities	7,144	Overall liquid and fixed assets net of short-term liabilities.
Net Assets (Shareholders' Funds)	7,144	Equity backing the business; improved markedly from £13 in 2023.
Employees	0	No employees, indicating a very small operation or sole director operation.

Interpretation of Vital Signs:

• Working Capital ("Healthy Cash Flow"): The net current assets (working capital) have decreased significantly from £20,803 in 2023 to £4,991 in 2024. This reduction is a symptom of increased current liabilities, which could strain liquidity. While still positive, the cushion is thinner, suggesting cash flow management needs focus.
• Solvency ("Balance Sheet Vitality"): Net assets improved from a near-zero £13 to £7,144, indicating the company has strengthened its equity base and reduced reliance on external liabilities. This is a positive sign of financial "recovery" or "stabilization."
• Asset Base ("Structural Health"): Fixed assets remain low and stable, showing limited investment in physical or intangible assets — typical for a service-based micro entity.
• Employee Base ("Operational Capacity"): No employees registered, implying the business is likely owner-operated or heavily reliant on contractors/outsourcing. This can affect scalability and operational risks.

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3. Diagnosis

EVAM CLINIC LIMITED is in an early stage of its lifecycle, being incorporated in 2022. The financial "symptoms" suggest it is a small-scale operation with minimal fixed assets and no staff, operated primarily by the director. The positive net assets and working capital indicate it is solvent and can meet its short-term obligations, but the substantial increase in current liabilities from 2023 to 2024 signals emerging financial stress points.

The reduction in net current assets suggests the business may be relying more on short-term creditor financing, which if unchecked, could lead to liquidity issues. However, the increased shareholders' funds reflect some capital injection or retained earnings, which is a healthy sign of financial "healing."

No overdue filings or formal insolvency indicators are present, which is reassuring. The director holds full control, which centralizes decision-making but also concentrates risk.

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4. Recommendations

To improve financial wellness and sustain healthy growth, the company should consider the following:

• Cash Flow Management: Closely monitor and control current liabilities to avoid liquidity crunches. Aim to maintain or increase working capital to ensure smooth operational "heartbeat."
• Expense Control: Since the company has no employees, focus on managing operational expenses and creditor terms to avoid overstretching payables. Negotiate longer payment terms where possible.
• Capital Injection or Revenue Growth: Explore opportunities to increase revenue or inject additional capital to strengthen equity and provide a buffer against financial shocks.
• Financial Planning: Implement regular financial forecasting to anticipate cash flow needs and avoid "symptoms" of distress.
• Compliance and Governance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain stakeholder confidence.
• Consider Growth Strategy: If the business model allows, consider hiring staff or expanding operations cautiously to increase capacity and revenue potential, ensuring that fixed assets and working capital grow proportionally.

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